TRADE AND PAYMENTS AGREEMENT BETWEEN THE GOVERNMENT OF INDIA AND THE GOVERNMENT OF THE POLISH PEOPLE'S REPUBLIC
New Delhi, 2 November 1959
The Government of India and the Government of Polish People's Republic, animated by the desire to develop trade relations between
the two countries on a balanced basis and to increase the volume of trade between them to as high a level as is possible, have agreed
upon the following :
1. Both Governments will in every possible way develop and strengthen the trade relations between the two countries on the principles
of equality and mutual benefit.
They will study and with the utmost goodwill take decisions on the suggestions which either of them would like to present for the
consideration of the other with the purpose of achieving closer economic relations.
2. (a) For the goods imported and exported from one country to the other, both Governments pledge themselves to grant maximum facilities
allowed by their respective laws, rules and regulations. During the period of validity of this agreement the total value of the imports
will be equal to the total value of the exports effected by either country. For this purpose and for periodic reviews, imports, whether
on deferred payment terms or on cash basis, relating to the contracts concluded and to be concluded on the basis of this and earlier
Indo-Polish Trade Agreement will be taken into account as and when payments are made.
(b) The said goods will enjoy full most-favoured-nation treatment in respect of customs duties and charges of any kind imposed on
imports or exports or in respect of the methods of levying such duties and charges and with respect to rules, formalities and charges
in connection with customs clearing operations.
(c) Further, the two countries will grant each other in respect of the issuance of import and export licences treatment no less favourable
than that granted to any other country.
(d) Any advantage, favour, privilege or immunity granted by either of the Contracting Parties to any product originating in the territory
of a third country or destined for its territory, shall be granted immediately and unconditionally to the like product originating
in the territory of either of the Contracting Parties or destined to be imported into its territory.
(e) The above provisions may be subject for further review in the event of either party being desirous of doing so as provided for
in Article XI.
3. The provisions of the above clauses shall not, however, apply to the grant or continuance of any :
(a) Advantages accorded by either Government to contiguous countries for the purpose of facilitating frontier traffic;
(b) Preferences or advantages accorded by India to any third country and existing on the 3rd April, 1956 or in replacement of such
preferences or advantages that existed prior to the 15th August, 1947.
The export of goods from the Polish People's Republic to India and from India to the Polis h People's Republic during the period of
validity of the present agreement will be carried out in accordance with the Schedules 'A' and V to be agreed upon between the two
Governments for every calendar year.
The goods agreed upon for export from the Polish People's Republic to India and from India to the Polish People's Republic during
the first year of the present agreement are set out in the attached Schedules 'A' and `B', respectively.
The import and export of the goods stipulated in Article II will be carried out in accordance with the export, import and foreign
exchange regulations in force in either country and on the basis of contracts to be concluded between the Polish Foreign Trade
Enterprises on the one side, and the Indian physical and juridiciall parties, including Indian State-owned Organisations, on the other.
The provisions of the present agreement do not affect the rights of the Polish Foreign Trade Enterprise and the rights of the Indian
physical and juridical parties, subject to the import, export and foreign exchange regulations in force in both the countries, of
concluding commercial transactions concerning the import or export of goods not included in the Schedules 'A' and 'B'.
Both Governments will render all possible assistance for the export and import of the goods mentioned in the Schedules Wand V as well
as for the goods to be exported and imported under the transactions referred to in Article IV.
All payments of a commercial and non-commercial nature between the Republic of India and the Polish People's Republic will be effected
in non-convertible Indian rupees.
For this purpose, the Narodowy Bank Polski will maintain a Central Account with the Reserve Bank of India and one or more accounts
with one or more commercial banks in India, authorised to deal in foreign exchange.
1. (a) The Central Account, maintained by the Narodowy Bank Polski with the Reserve Bank of India, will be used for depositing the
rupee holdings of the Narodowy Bank Polski and for replenishing the accounts of the Narodowy Bank Polski with the authorised Indian
commercial banks and for operating the technical credit.
(b) The accounts maintained by the Narodowy Aank Polski with the Indian Commercial Banks will be used for carrying out all other operations
connected with the payments of a commercial and non-commercial nature, as mentioned above.
2. (a) The Central Account will be replenished by transfers of funds in Indian rupees from the accounts maintained by the Narodowy
Bank Polski with the Indian Commercial Banks and by receipts under the technical credit.
(b) The accounts with the Commercial Banks will be replenished by transfers of funds from other similar accounts and from the Central
The payments permitted in accordance with the Indian Foreign Exchange Control Laws and Regulations will be effected on the basis of
this Agreement to the physical and juridical persons residing in the Polish People's Republic by the physical and juridical persons
residing in India, by crediting the amount of such payments to the account of the Narodowy Bank Polski with the Commercial Indian
Likewise, the payments which are to be effected by the physical and juridical persons residing in the Polish People's Republic to
the physical and juridical persons residing in India in accordance with the Polish Foreign Exchange Control Laws and Regulations
will be effected by debiting the account maintained by the Narodowy Bank Polski with the Commercial Indian Banks, under the instructions
of the Narodlowy Bank Polski.
The reciprocal commitments expressed in another currency than the Indian rupee but paid in Indian rupees will be converted in Indian
rupees at the official parity of that currency, in respect to the Indian rupee, in force on the day of the payment.
Any balances in the Rupee Accounts of the Narodowy Bank Polski or any debt of the Narodowy Bank Polski in connection with the grant
of technical credit will, upon expiry of this Agreement, be used during the ensuing 12 months for the purchase of Indian or Polish
the case may be. After the expiry of this period,. any balances outstanding will be settled in such a way, as may be agreed upon between
the two parties.
Mercantile ships of both countries while entering, staying in or leaving the ports of either country, will enjoy the most favoured
facilities granted by their respective laws, rules and regulations to ships under third countries, flags except the ships engaged
in coastal navigation.
The two Governments agreed to establish and promote close co-operation in the field of science and technology between the two countries
in conformity with the rules and regulations in force in their respective countries. In particular, the two Governments resolve to
encourage fruitful co-operation between Indian and Polish Industrial organisations by way of sharing of technical skill, mutual exchange
of technical documentations, sponsoring of technical missions, provision of technicians and training facilities and supply of equipment
In order to facilitate the implementation of the Agreement, the two Contracting Parties agree to consult each other in respect of
matters, connected with the trade and payments between the two countries.
For this purpose, the representatives of the two Governments will meet at the request of either party at a place and time, to be mutually
agreed upon, the meeting being held on a date within 45 days of the request.
The present Agreement will come into force on Ist January 1960 and will remain valid for a period of three years.
The Schedules 'A' and S' can be extended, altered, or renewed by letters exchanged between the two parties at the end of each calendar
DONE in New Delhi, on the second day of November, 1959, in two originals in the English language, both texts being equally authentic.
Sd./- K.R.F. KHILNANI
On behalf of the Government of India.
Sd./- J. BURAMEWICZ
On behalf of the Government of the Polish People's Republic.
LIST OF ITEMS FOR EXPORT FROM POLAND
Machinery and Equipment:
1. Construction and building machinery.
2. Road building machinery.
3. Mining and drilling machinery and equipment.
4. Machinery and equipment for foundries.
5. Textile machinery.
6. Welding machinery and equipment.
7. Metal and wood working machine tools.
8. Pneumatic harnmers and presses.
10. Machinery and equipment for solvent extraction plants.
11. Machinery and equipment for cement industry.
12. Machinery and equipment for food industry.
13. Machinery and equipment for chemical industry.
14. Machinery and equipment for production ofbuilding materials.
15. Mineral crushing machines.
16. Diesel engines.
17. Electric motors.
18. Pumps and compressors.
20. Overhead travelling, lorry and mobile cranes.
21. Tractors, lorries, agricultural machines and implements with spare parts.
22. Dry cargo ships and tankers.
23. Fishing boats, dredgers, tugboats and river-crafts.
24. Ship's engines and ship's equipment.
25. Accessories for stationary steam engines and power plants.
26. Electrical equipment including transformers and switchgears.
27. Electrical instruments, equipment, apparatus and appliances.
28. Equipment for service stations.
29. Industrial ventilators.
30. Penstock pipes.
31. Machinery for flour mills.
32. Helicopters, aircrafts for sanitary, sport and agricultural purposes.
33. Generator and transformer welding sets.
34. Equipment for rolling mills.
35. Pneumatic tools and electric tools.
36. Rolling stocks.
37. Various machines and equipment for industry.
IL Complete Plants and Equipment for Industry:
1 . Steel structural plants.
2. Electric motor factories.
3. Drop forged tools factories.
4. Machine tool factories.
5. Coal washing plants.
6. Factories for steel cranes and equipment for building industry.
7. Refractory bricks plant.
8. Copper ore mine and refinery.
9. Rolling stocks repairing workshops.
10. Gas-concrete factories.
11. Complete plants for solvent extraction.
12. Cold storage plants.
13. Storage tanks for molasses and alcohol.
14. Cast iron and non-ferrous metal foundries.
15. Equipment for steel industry.
16. Complete equipment for chemical factories.
17. Boiler and boiler equipment.
18. Complete plant for tractors.
19. Aluminium. dioxide factory.
20. Complete plants and equipment for zinc industry.
21. Appliances and equipment for small scale and domestic industries.
22. Various complete plants and equipment.
Instruments and Apparatus:
1 . Laboratory and optical instruments and apparatus.
2. Controlling and measuring instruments.
3. Apparatus and instruments for medicines and dentistry.
4. Electric and electronic measuring instruments.
5. Electric motors.
6. Electric furnaces.
7. Switchboard measuring instruments.
8. Various instruments and apparatus.
IV. Iron, Coloured Metals, Raw and Manufactured:
1. Steel products.
2. Alloy steel.
3. Mining explosives.
4. Zinc electrolytic and zinc dust.
5. Zinc sheets.
6. Various metal articles.
7. Ball and ball bearings.
8. Gas cylinders.
10. Bicycle components.
V. Products ofChemical Industty:
1. Artificial fertilisers.
2. Soda ash.
3. Caustic soda.
4. Mining explosives.
5. Hunting and sporting ammunitions.
6. Dyestuffs and intermediates.
7. Pigments in colours.
8. Pharmaceuticals, including antibiotics.
9. Vaccines and serums.
10. Photo-materials and photo-chernicals.
11. Various organic and inorganic chemicals.
12. Carbon electrodes.
13. Electrode paste.
15. Mass for gramophone records.
16. Organic raw plastic materials.
17. Celluloid, bakelite and galalith sheets.
18. Synthetic rubber.
19. Accelerators for rubber industry.
20- Laboratory chemicals.
VI. Miscellaneous Goods:
1 . Newsprint.
2. 'Writing and printing paper.
3. Wired glass.
4. Figured glass.
5. Glassware and chinaware.
8. Refractory materials.
9. Television sets.
10. Cinema projectors.
11. Radio components.
12. Books and music notes.
13. Cinematographic films exposed.
14. Postage stamps.
16. Casein lactic.
LIST OF ITEMS FOR EXPORT FROM INDIA
1. Spices, including pepper.
5. Cocoa beans.
6. Vegetable oils (cottonseed oil, linseed oil, groundmit oil, etc.).
7. Cashew nuts.
8. Shark oil.
9. Essential oil.
10. Pharmaceutical glycerine.
11. Bone powder.
14. Medical herbs.
15. Gum tragacanth.
17. Cotton, raw cotton waste.
18. Cotton products including yarns.
19. Wool, raw.
20. Wool, waste.
21. Jute, raw.
22. Jute, products.
23. Coir products.
24. Hides and skins, raw and semi-processed.
25. Tanned skins and leather products including footwear.
26. Tanning materials, myrobalan and extracts.
27. Iron ore.
28. Manganese ore.
29. Manganese dioxide.
30. Pig iron.
31. Borax and colemanite.
32. Boric acid.
34. Electric motors and pumps.
35. Handicrafts and cottage industry products.
36. Sports goods.
37. Cinema films.
38. Books, magazines, stamps.
39. Diesel engines stationary.
40. Vehicular diesel engines.
41. Steel furniture particularly steel almirahs, cabinets, safes, etc.
42. Storage batteries.
43. Dry batteries.
44. Gaskets (metallic as well as non-metallic).
45. Handloom cloth.
46. Technical glycerine.
47. Magnesium chloride.
48. Liquid chlorine.
49. Hydrogen peroxide.
50. Castor oil.
51. Perfumed hair oils.
52. Cigars and cigarettes.
53. Frozen meat.
54. Hosiery (cotton, woollen and Art silk).
55. Frozen fish and prawns.
56. Cashew shell oil.
57. Tobacco unmanufactured.
58. Deoiled cake.
60. Palmyra fibre.
61. Groundnut h.p.s.
62. Camel hair.
63. Textile machinery and accessories.